Showing posts from March, 2018

Why your exit strategy is important when House Hacking

Happy Humpday House Hacking!! Okay so everyone probably knows what an exit strategy is in life, but some may not know how that applies to House Hacking.Today we’re going to talk about what is an exit strategy, why it’s crucial when House hacking and, crunch the numbers between a purchase with an exit strategy and a purchase without an exit strategy.

Okay so in real estate, an exit strategy

    1.  When you plan on selling it
    2.  How you plan to do that
    3.  How that benefits you from a profit standpoint

Now, why is this important in House Hacking?Well, if you didn’t know by now, if you are a House Hacker you are essentially a real estate investor.And in real estate you need to understand the following concepts:

    1.  Real estate investors buy properties based off of logic and numbers, (not emotions) with their exit strategy in mind.

    2. When you purchase a property based on emotions, hands down you are over paying.

    3.  The best time to purchase real estate is NOW, not next we…

What the heck is a NOI (Net Operating Income) and why it's Important

Okay so hopefully by now, you understand the benefits of House Hacking and ready to make some moves.If not, check out our previous articles to recap.So today is all about learning
1) What is the NOI 2) Why it’s important to understand as a House Hacker 3) Run some numbers so it all makes sense.
Okay are you ready. Leggggoo!

What is the Net Operating Income (NOI)?The Net Operating Income, known also as NOI, tells you the amount of money your house will generate before paying your mortgage and before income taxes.So it’s basically your net rent.
The formula is really simple: Taking the amount of rent you ReceiveSubtract all the expenses related to operating the rental.
This could be, utilities that you pay, property management fees, vacancy fees, maintenance supplies, basically any expense that you pay out of pocket to operate your rental.Keep in mind you can calculate the NOI on a monthly or yearly basis.
So why is this number important for house hackers?Because it tells you how much of your mo…